Kenyans decry taxes, budget cuts ahead of tomorrow's budget reading

Treasury CS Njuguna Ndung'u (centre) outside the National Treasury offices ahead of 2023/2024 budget reading in Parliament. [Samson Wire,Standard]

Kenyans have continued to call for a review of the government revenue and expenditure plans for the 2024/2025 fiscal year ahead of the budget reading on June 13.

Many have poked holes into the Finance Bill 2024 which outlines how revenue will be collected, while expressing dissatisfaction with the Appropriations Bill which shows how the revenue will be spent.

According to the National Assembly Budget and Appropriations Committee led by Kiharu MP Ndindi Nyoro, Kenya will spend an estimated Sh4 trillion with a budget that reduces allocation for key sectors such as education, health, agriculture, trade, transport and energy.

In contrast, the presidency comprising the state house and offices of the president, deputy president and the prime cabinet secretary will be allocated an additional Sh1.2 billion.

The concerned citizens have taken issue with this development.

On X, @MokayaKelvinOb wrote: "Drastic budget reductions: The Ministry of Health requested KES319.4bn for 2024-25, but the Treasury reduced it to just KES100bn, undermining UHC goals."

@Morris_Aron remarked: "If the government can just focus on agriculture for food security, reducing the cost of doing business and have a special fund for cheap credit for MSMEs, the country will just be fine."

A user, @OleCarrington believes that, "If implemented as is, Finance Bill 2024 will increase the cost of production, thereby destroying the competitiveness of local & export markets. Retail prices will increase and burden the common citizen further."

Other Kenyans have blamed the taxman, Kenya Revenue Authority (KRA), for consistently missing its revenue collection targets and resorting to tax hikes as its first remedy.

@wacuka_Kiruma wrote: "So, because KRA is unable to find those evading taxes, will they double tax everyone? Kenyans pay for their incompetence"

Among the contentious tax proposals are a 16 percent VAT on basic commodities including bread, increased mobile transaction charges, motor vehicle tax, an eco-levy, Significant Economic Presence Tax targeting foreign investments, and widening of excise duty bracket.

National Assembly Departmental Committee on Finance and National Planning Chairperson Kuria Kimani says that the bill must eventually pass but views from Kenyans are paramount.

"The consequence of rejecting the bill in entirety will put a constitutional halt to the budget process. That would leave the government without a budget by July 1, leading to a government shutdown," said MP Kuria.

He added: "The bill doesn't have to pass as it is. These are proposals which we are considering and we'll make the best decisions for Kenya. We'll either delete, amend or pass those contentious clauses."

National Treasury and Economic Planning CS, Njuguna Ndung'u will present the 2024/2025 budget tomorrow, Thursday June 13, at the National Assembly Main Chamber at 3 PM.